On December 31, 2018, Alan and Company prepared an income statement and balance sheet but failed to take into account four adjusting journal entries. The income statement, prepared on this incorrect basis, reported income before income tax of $26,000. The balance sheet (before the effect of income taxes) reflected total assets, $82,000; total liabilities, $36,000; and stockholders’ equity, $46,000. The data for the four adjusting journal entries follow:Effect of Amortization of $7,200 for the year on software was not recorded.Salaries and Wages amounting to $16,200 for the last three days of December 2018 were not paid and not recorded (the next payroll will be on January 10, 2019).Rent revenue of $3,600 was collected on December 1, 2018, for office space for the three-month period December 1, 2018, to February 28, 2019. The $3,600 was credited in full to Deferred Revenue when collected.Income taxes were not recorded and not paid. The income tax rate for the company is 30%.Complete the following table to show the effects of the four adjusting journal entries. (Negative amounts should be indicated by a minus sign.)Net Income. Total assets Total liabilities Stockholders equityIncluding the impact of the income tax of 30%
On December 31, 2018, Alan and Company prepared an income statement and
Effect of Amortization of $7,200 for the year on software was not recorded.
Salaries and Wages amounting to $16,200 for the last three days of December 2018 were not paid and not recorded (the next payroll will be on January 10, 2019).
Rent revenue of $3,600 was collected on December 1, 2018, for office space for the three-month period December 1, 2018, to February 28, 2019. The $3,600 was credited in full to Deferred Revenue when collected.
Income taxes were not recorded and not paid. The income tax rate for the company is 30%.
Complete the following table to show the effects of the four adjusting journal entries. (Negative amounts should be indicated by a minus sign.)
Net Income. Total assets Total liabilities Stockholders equity
Including the impact of the income tax of 30%
Trending now
This is a popular solution!
Step by step
Solved in 1 steps with 1 images
